"Foreclosure Express or Train Wreck?"

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

Roberty Cruzen wrote an excellent article entitled "Foreclosure Express or Train Wreck?: How to Avoid Legan Entanglements when Working Short Sales and Foreclosures" in the latest California Real Estate Magazine.

In this article, he reviews some rules of thumb that he recommends when negotiating a short sale--many of which I have blogged about before. He recommends always submitting the complete package, always following up every fax or email with a phone call, documenting everything, and being proactive.

The "train wreck" he refers to in the article occurs when the first and second are serviced by different servicing companies. Right now, I seem to be headed for a number of these train wrecks.  I have one deal where we had approval from the first and the second, and then the second was sold off. Now the new servicer of the second wants more money then previously approved. Then I have have a first that wants to give 10k to a second, and a second who will take nothing less than 15k. Nobody wants to pitch in, but everyone wants their money.

The author of the article interviewed an agent who suggested working short sales where the first and second are serviced by the same company. That would be great! That would make the deal so much easier. But, unfortunately, it is sometimes difficult to cherry-pick the deals that come your way.

Another legal entanglement that is mentioned is that some there are requests for agents who list foreclosed properties to remove tenants and personal property in ways and in timeframes that may be in violation of state laws.

It is a slippery slope out there. We all want and need the business, and some times need to make tough decisions in order to assure that our license is not on the line!

Broker, Realtor®

 

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Topic:
ActiveRain Community
Groups:
California Short Sales, REO's, and Foreclosures
Real Estate Rookie
Realtors®
Short Sales and Forclosures ONLY
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Tags:
short sales

Comments 4 New Comment

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Ambassador
785,292
Charlie Ragonesi
Homes - Big Canoe, Jasper, North Georgia Pros
AllMountainRealty.com

There are so many trains and so many tracks and so few signal folks. The wrecks are out there and really despite all our efforts are unavoidalbe

May 02, 2009 04:30 PM
Ambassador
595,289
Janna Scharf
Coeur d'Alene Real Estate Pro
Keller Williams Realty Coeur d'Alene

Train wrecks is a good way to characterize it.  And you know that there are only going to be more and more trains coming around the mountain....

May 02, 2009 10:40 PM
Rainmaker
103,430
Amber Noble-Garland
CDPE Top Realtor in Marlboro, Manalapan, Freehold
Strategic Marketing Expert & Short Sale Specialist in NJ

A first lien holder and second lien holder both being repped by the same servicing company??? Boy, that sure is this NJ short sale Realtor's dream come true! :)

May 05, 2009 09:04 PM
Rainer
9,084
John Sweeps McNulty
Gallagher & Lindsey Realtors

Your "rat smell" comment to me on my concern for mod "helpers" is much appreciated. I have been encouraged that some amongst us are caring and want to see those in stressful times un victimized by the predatory vermin around us.

BTW, the next day I got a letter from my lender, they have all they need for a thumbs up or down. Fingers crossed. Please tell me what you think from my last two posts.

 

http://www.mcnultygroup.com/Site/Sniff-Test%21_.....in_Real_Estate/Entries/2009/5/8_Can_I_feel_comfortable_doing_the_Mod_myself.html

Thank you,

John Sweeps McNulty

May 08, 2009 09:45 PM
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Ambassador
1,090,378

Melissa Zavala

Broker, Escondido Real Estate, San Diego County
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